12/02/2021

Yellen Again Warns Congress About Debt Limit

The never-ending quest to increase the debt limit roils on

Again this week, Treasury Secretary Janet Yellen warned Congress  that failure to raise the debt ceiling would “eviscerate” U.S. economic recovery.

While Senate leaders continue to have closed-door discussions about the debt limit, Congress has until Dec. 15 before the Treasury Department runs out of resources to manage the borrowing authority of the U.S. government.

“I cannot overstate how critical it is that Congress address this issue,” Yellen told the Senate Committee on Banking, Housing and Urban Affairs this week. “America must pay its bills on time and in full. If we do not, we will eviscerate our current recovery. In a matter of days, the majority of Americans would suffer financial pain as critical payments, like Social Security checks and military paychecks, would not reach their bank accounts, and that would likely be followed by a deep recession.”

Senate Majority Leader Chuck Schumer (D-NY) and Senate Minority Leader Mitch McConnell (R-KY) have been discussing a deal to raise the debt limit beyond the 2022 elections; yet, it’s unclear where those negotiations stand.

This article was provided to OSAP by ASAE's Power of A and Inroads.